A study compiled by the Federal Reserve and reported by Bank On Women found that even marginally increasing leadership diversity on boards resulted in powerful increases in profitability and efficiency for financial institutions. Banks showed noticeable progress once they reached a minimum threshold of 13-17% female board members. With the median size of 13 members on a board, two or more female members would make a critical mass to deliver such enhanced performance, resulting in employees who feel empowered to speak up and have confidence their voices are heard.
Women in leadership bring diverse viewpoints that better the organization as a whole. “In addition to hard skills, women bring a different type of leadership and emotional intelligence,” according to Terrie Spiro, co-founder of Bank on Women in the Believe in Banking Podcast. “When blended with the existing talent that is already at your organization makes for a more powerful, effective force. The whole concept of cognitive diversity means outlooks perspectives, backgrounds, experiences that contribute to better decision making.”
Source: “The Performance Effects of Gender Diversity on Bank Boards,” Federal Reserve Board, December 2019, highlighted on BankOnWomen.org, 2022